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Selangor now a high-income state, says World Bank economist

KUALA LUMPUR: Selangor is now a high-income state, said World Bank lead economist for Malaysia Apurva Sanghi.

In a tweet, he said Selangor had surpassed the high-income threshold of US$14,000, reaching gross national income (GNI) per state capita of US$14,291.

Selangor now joins the ranks of Kuala Lumpur, Penang, Sarawak and Labuan.

Apurva said Kuala Lumpur had the highest GNI per capita at US$29,967, measured using GNI per capita in US dollars.

The latest GNI is usually revealed on July 1 based on the previous year's number.

Apurva said he predicted that the country would reach high-income status by 2030.

In a post on X on July 4, he said this projection depended on how the ringgit performed against the US dollar.

"Malaysia is still in the upper middle-income bracket, but could attain high-income status by 2030 if the ringgit to US dollar exchange rate stays at the current rate, around RM4.70 to US$1.

"This, however, would also depend on the percentage of the average growth that stays at 4 per cent and an inflation of about 2 per cent in 2030."

He said Malaysia's GNI per capita rose slightly from US$11,830 in 2022 to US$11,970 in July 2023, yet it remained US$2,035 below the threshold for high-income nation status.

Apurva said high income did not necessarily mean high development.

Citing Sarawak as an example, he said although the state had high-income status, it also had a poverty rate of 10.8 per cent in 2022.

"In contrast, Perlis, which does not have high-income status, has a low poverty rate of 4 per cent."

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